# Fees

Woken Exchange is a fork of UniswapV2 (x × y = k)

The classic UniswapV2 model charges a 0.3% swap fee, which is accrued by the liquidity provider as LP token. <br>

## setSwapFee Function

\
The Woken [Certified Projects](https://woken-exchange.gitbook.io/wokenexchange/woken-v1-our-solution/certified-projects) can customize their liquidity pair's swap fees using the setSwapFee function. \
They can move from 0.3% (default fees) to a **maximum of 1%**\
These fees are accumulated as LP tokens for the liquidity providers of the pair.

<details>

<summary><mark style="color:blue;">function setSwapFee</mark></summary>

{% code title="WokenPair.sol" overflow="wrap" fullWidth="false" %}

```solidity
function setSwapFee(uint32 _swapFee) external {
        require(_swapFee >= 3, "Woken: lower then 3");
        require(msg.sender == factory, 'Woken: FORBIDDEN');
        require(_swapFee <= 10, 'Woken: FORBIDDEN_FEE');
        swapFee = _swapFee;
    }
```

{% endcode %}

{% code title="WokenFactory.sol" overflow="wrap" %}

```solidity
function setSwapFee(address _pair, uint32 _swapFee) external isPairAdminDao(_pair) {
        WokenPair(_pair).setSwapFee(_swapFee);
        emit SwapFeeChange(_pair, _swapFee, msg.sender);
    }
```

{% endcode %}

</details>

### FeeOn (FeeTo) enabled

The fee for the Woken protocol (FeeOn) is 1/6th of the fee of a liquidity pair, accrued as LP token. They are mainly used for :

1. Proving liquidity to the WKN-USDC LP on the Arbitrum chain (genesis LP) by adding WKN from our reserve + USDC from fees earned.
2. Create new WKN-USDC pairs (with our WKN reserves) on other blockchains to open up the DAO and welcome new Certified Projects.
3. **WKN buyback** to keep a minimum amount of WKN to reward the DAO protocol votes (or burn, according to a protocol vote).
4. Pay the maintenance and the development of the protocol
5. Marketing&#x20;

{% hint style="info" %}
In [Woken V2](https://woken-exchange.gitbook.io/wokenexchange/woken-v2-evolutions/woken-v2), we aim to open stable pairs (USDT-USDC) based on a UniswapV3 model, offering 0.01% swap fees.
{% endhint %}